(Kitco News) - Comex gold prices ended the U.S. day session moderately lower and closed at a fresh 6.5-month low close Tuesday. More technical selling pressure was featured in gold and silver following Friday’s downside routs. A stable U.S. dollar index also limited buying interest in the gold and silver markets Tuesday. Gold and silver markets have seen serious near-term technical damage inflicted recently. April gold last traded down $6.00 at $1,603.50 an ounce. Spot gold was last quoted down $5.80 at $1,604.50. March Comex silver last traded down $0.459 at $29.39 an ounce.

With China back in play after a week-long holiday the market place is looking to the world’s second-largest economy for raw commodity demand clues. There were reports overnight that China’s centrally planned economy is seeing some restrictions put on home financing due to higher property prices, which leads to ideas China could tap the brakes on its economic growth rate. That was also a bearish underlying factor for the precious metals markets Tuesday.

In European news overnight, the German ZEW economic expectations index hit a three-year high in its latest February report. That’s another clue that the European Union economy has turned the corner toward better conditions ahead. Italian and Spanish bond yields crept lower Tuesday following a well-received Spanish debt offering. European traders are anxiously awaiting Italian elections beginning Sunday.

The market place is awaiting Wednesday afternoon’s release of the latest minutes of the U.S. Federal Reserve’s FOMC meeting. These minutes in the past few months have been market-movers.

The U.S. dollar index traded near steady Tuesday and sitting near a six-week high. The U.S. dollar bulls have gained upside technical momentum recently, to begin to suggest the dollar index may have put in a market bottom. Meantime, Nymex crude oil futures prices were near steady Tuesday. The crude oil bulls still have the overall near-term technical advantage but did fade a bit late last week. If crude oil bulls start to weaken that would be a bearish development for the raw commodity sector, including the precious metals.

The London P.M. gold fixing is $1,607.75 versus the previous London P.M. fixing of $1,610.75.

Technically, April gold futures closed nearer the session low Tuesday and closed at a fresh 6.5-month low close. Serious near-term technical damage has been inflicted recently. Prices are in a four-week-old downtrend on the daily bar chart. Importantly, from a longer-term technical perspective, the key level for traders and investors to watch is the $1,500.00 level. No serious longer-term chart damage has yet occurred in nearby gold futures. However, a drop below the $1,500.00 level would begin to produce serious longer-term chart damage, and then begin to call into question the longer-term price uptrend that is still in place for gold. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,650.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at $1,580.00. First resistance is seen at Tuesday’s high of $1,618.80 and then at $1,627.90. First support is seen at last Friday’s low of $1,596.70 and then at $1,590.00. Wyckoff’s Market Rating: 3.0

March silver futures prices closed nearer the session low and hit a fresh six-month low Tuesday. March silver bears have the solid near-term technical advantage and gained more downside momentum Tuesday. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at $31.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at $29.00. First resistance is seen at $30.00 and then at Tuesday’s high of $30.15. Next support is seen at Tuesday’s low of $29.175 and then at $29.00. Wyckoff's Market Rating: 3.0.

March N.Y. copper closed down 870 points at 365.00 cents Tuesday. Prices closed nearer the session low today and hit a fresh three-week low as the bulls faded. Copper bulls still have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at of 360.00 cents. First resistance is seen at 367.50 cents and then at 370.00 cents. First support is seen at Tuesday’s low of 364.45 cents and then at 362.50 cents. Wyckoff's Market Rating: 5.5.

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